Startup India Seed Fund Scheme (SISFS): who qualifies, how it pays, and where it stands

What SISFS is and who runs it

The Startup India Seed Fund Scheme, usually shortened to SISFS, is run by DPIIT under the Ministry of Commerce and Industry. It is written for one stretch of a young company: the months where you need to prove your product works and then take it to market. Put simply, it pays for proof of concept, prototype, product trials and market entry for early tech startups.

Two things set it apart from most grants you will read about. First, it offers two kinds of money: a grant for proof of concept work, and convertible debentures or debt for market entry. Second, the government does not pay you directly. You apply on the SISFS portal, choose incubators, and an incubator selects you and pays out.

The stages it lists are idea, prototype and early revenue. Growth stage companies are not on that list. The SISFS facts page has the same details in short form, with the official apply link.

Where the scheme stands today

The status above is worked out from the scheme's dates each time you open this page, so it is right on the day you read it, not on the day this guide was written. If a new call is announced, the line changes with it.

One piece of history that will not change: the call billed as the final notice set 31 May 2026 as the last date for startups to apply. Whether there is another call is the scheme's decision, which is why this guide reads the status from the dates instead of typing it in.

Two kinds of money, for two different jobs

The amounts are up to ₹20 lakh as a grant for proof of concept, and up to ₹50 lakh as convertible debentures or debt for market entry. They are for different stages of the same journey, and they are very different kinds of money.

The grant: up to ₹20 lakh for proof of concept

This is the part for showing that your idea works: building the prototype, running product trials and gathering the evidence. A grant is not a loan and it does not take shares in your company, so it does not dilute you.

Convertible debentures or debt: up to ₹50 lakh for market entry

This is the part for taking a working product to market, and it is not free money. Debt is repaid. A convertible debenture is a debt instrument that can turn into shares later, which means it can dilute you. Read the terms you are offered before you accept, and if you have never signed one, go through them with a lawyer or CA.

Who qualifies, rule by rule

The scheme lists four rules, and you need to meet all four. It is also only open to Indian registered entities.

DPIIT recognised, incorporated 2 years ago or less

This is two checks in one. You need DPIIT recognition, and your company must be no more than 2 years old. Count from the date on your certificate of incorporation, not from the day you started working on the idea. DPIIT recognition itself accepts companies up to 10 years old, so being recognised does not mean you pass this rule. The SISFS age limit is much tighter.

Indian promoters hold at least 51%

Open your cap table and add up the shares held by the Indian promoters, which for most young companies means the Indian founders. That total must be 51% or more. Every round you raise adds shareholders and lowers the founders' combined stake, and a co-founder who is not Indian does not add to it. If you have raised money or have a founder abroad, check this before you apply.

Not more than ₹10 lakh from other government schemes

If your company has already received more than ₹10 lakh from other government schemes, you do not qualify. Add up every government grant or scheme payment your company has received so far. If the total is close to ₹10 lakh, read the official guidelines on the SISFS portal to see exactly what counts before you apply.

Technology is core to the product or service

The scheme is for tech startups. Technology has to sit at the heart of what you sell, not beside it. If your product would work the same way without the technology, expect this rule to be hard to meet. Be ready to say in two sentences what your technology does that the product could not do without it.

Get DPIIT recognition first

DPIIT recognition is the government's confirmation that your company is a startup. It is free, and SISFS asks for it before you can apply.

To be recognised you need to be a private limited company, partnership firm, LLP or cooperative society, up to 10 years old (20 for deep tech), with turnover below ₹200 crore in every financial year so far, working on a new or improved product, service or process. You apply on the National Single Window System (NSWS) by adding Registration as a Startup to your dashboard and filling in the form.

Our DPIIT recognition guide walks through each step and lists the other grants that ask for recognition.

How the incubator route works

SISFS money reaches you through an incubator, not from a ministry. The route is short to describe: you apply on the SISFS portal and choose up to three incubators, and the incubator selects the startups it backs and pays out.

1. 1Get DPIIT recognition, and check the four rules above against your own papers.
2. 2Apply on the SISFS portal.
3. 3Choose up to three incubators to send your application to.
4. 4An incubator reviews the startups that chose it, selects the ones it will back, and pays out.

Choosing your three incubators

• Pick incubators that know your sector. One that has worked with companies like yours will understand your proof of concept more easily.
• Read what each incubator says about itself before you choose, on the portal and on its own site.
• Treat each choice as a real fit, not a lottery ticket. Three picks give you more chances only if all three make sense for you.
• If you are already part of an incubation programme, ask your incubator how it handles SISFS applications.

For how incubators and accelerators work more generally, read our guide to accelerators and incubators in India.

What to have ready

• Your DPIIT recognition certificate and your certificate of incorporation.
• A current cap table that shows the Indian promoters' combined stake.
• A plain list of any government money the company has already received, with amounts.
• A proof of concept plan: what you will build or test, what result would show it works, and what each part costs.
• If you want the market entry money, a short plan for reaching your first customers and what you will spend it on.
• A short pitch deck. Our pitch deck guide covers what to put in one.

Common reasons an application goes nowhere

Each of these comes straight from the rules. Check them before you spend an evening on the form.

• Not DPIIT recognised. Recognition comes first, so get the certificate before you apply.
• Company older than 2 years. DPIIT accepts companies up to 10 years old, but SISFS only takes those incorporated 2 years ago or less.
• Technology is not core. If the technology is a feature rather than the product, this rule is hard to meet. Say clearly what it does.
• Already had more than ₹10 lakh from government schemes. Earlier government money counts against you here, so add it up honestly.
• Indian promoters below 51%. A foreign co-founder or a round that diluted the founders can tip this.
• Incubators that do not fit. The incubator selects, so picks outside your sector use up choices without improving your chances.

If you cannot apply to SISFS right now: grants open for early-stage startups

These are government grants open now for idea and prototype stage startups, read from our grants catalogue. Each one links to its own page with the amount, who can apply and the official link.

• Open all yearSubsidy
  

  Agri Clinics and Agri Business Centres Scheme (AC&ABC)

  Ministry of Agriculture and Farmers Welfare (training by MANAGE, subsidy via NABARD)
  36% of project cost (44% for women, SC/ST, North East and hill states) on projects up to ₹20 lakh individual or ₹1 crore groupTraining plus credit linked subsidy for agriculture graduates starting agri ventures
• Open all yearFellowship
  

  AICTE Productization Fellowship (APF)

  All India Council for Technical Education (AICTE), Ministry of Education
  ₹37,000 a month per student for up to 2 years. Plus ₹50,000 a year per team.Monthly fellowship for students turning a proof of concept into a product
• Open all yearGrant plus other support
  

  Atal Incubation Centres (AIC)

  Atal Innovation Mission, NITI Aayog
  Set by each incubatorIncubation, mentoring and seed support at AIM funded incubators across India
• Open all yearSubsidy
  

  BIS Certification Fee Concessions for Startups and Small Units

  Bureau of Indian Standards, Department of Consumer Affairs
  80% off the minimum marking fee; extra 10% off for womenLower annual BIS marking fee for product certification (ISI mark) for startups and small units
• Open all yearReimbursement
  

  Design Linked Incentive (DLI) Scheme

  Ministry of Electronics and IT (India Semiconductor Mission, with C-DAC)
  Up to 50% of eligible design costs, capped at ₹15 crore; plus 6% to 4% of net sales for 5 years, capped at ₹30 croreCo-funding chip and semiconductor design projects, plus EDA tools and design infrastructure
• Open nowGrant
  D

  DRDO Technology Development Fund (TDF)

  Ministry of Defence, executed by DRDO
  Projects up to ₹50 crore; TDF funds up to 90% of costGrants for Indian industry to develop defence and dual-use technologies
• Open all yearGrant plus other support
  

  Gen-Next Support for Innovative Startups (GENESIS)

  MeitY Startup Hub, Ministry of Electronics and IT
  Up to ₹10 lakh early stage; up to ₹50 lakh for pilots; up to ₹1 crore for deep techFunding for tech startups in Tier 2 and Tier 3 cities, from idea to pilot and deep tech
• Closes 30 Nov 2026Grant
  

  ICMR First in the World Challenge

  Indian Council of Medical Research, Department of Health Research
  Amount set per projectFunding for high risk health research aiming at first of its kind products or processes

Read the who can apply line on each page first: that is where DPIIT recognition, location and stage rules show up. This list is worked out from the same dates as the status line at the top, so it changes as calls open and close.

For every grant, central and state, open or not, see all startup grants. For calls with a deadline coming up and schemes open all year, read government grants open now.